What is the Franchise Fee for a C12 Group territory that is defined as 0.47 units?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
es, which depend on the number of Territory Units granted to Franchisee. Franchisee's Initial Franchise Fees are comprised of the components below:
- Franchise Fee. Upon the execution of this Agreement, Franchisee must pay Franchisor a Franchise Fee as set forth below. The Franchise Fee varies based on the target market potential of the designated Territory for the Franchised Business. Franchise Units are $25,000 (with Franchise Unit otherwise already defined from a calculation basis) per 1.0 unit (Territories comprising between 0.9 and 1.1 units count as one (1) unit). Franchisor will determine the number of units that Franchisee's Territory constitutes. If a defined territory for purchase is less than or more than one (1) unit, the Franchise Fee shall be the number of units multiplied by $25,000 but no less than $12,500. For example, a metropolitan market with a defined territory containing an estimated 1.3 units worth of eligible members would result in a $32,500 Franchise Fee. On the other hand, a rural or less densely populated market representing 0.65 units would result in a $16,250 Franchise Fee. A Territory of 0.92 units would still consist of a $25,000 Franchise Fee whereas a market with 0.47 units would consist of
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchise fee for a territory defined as 0.47 units is $12,500. The franchise fee is determined by multiplying the number of units by $25,000, but there is a minimum fee of $12,500.
For a prospective C12 Group franchisee, this means that even if the territory they are purchasing is smaller and has fewer potential members, they will still need to pay the minimum franchise fee of $12,500. This is important to consider when evaluating the potential return on investment for a smaller territory.
The FDD specifies that territories comprising between 0.9 and 1.1 units count as one unit, costing $25,000. A metropolitan market with 1.3 units would result in a $32,500 franchise fee, while a rural market with 0.65 units would result in a $16,250 franchise fee. The franchise fee is generally nonrefundable, so franchisees should carefully evaluate the territory before signing the agreement.
The initial franchise fee is only one component of the initial investment. The franchisee must also pay a $10,000 prepaid marketing fund fee and a training/technology fee of $12,000 for the franchisee and $10,000 for each additional Associate Chair attending New Chair Training.